The taxes Rachel Reeves could raise after income tax hike abandoned
Rachel Reeves could hike these taxes instead if she doesn’t put up income tax
- Chancellor Rachel Reeves has reportedly ruled out an income tax rise ahead of the Budget, reversing earlier indications of significant tax increases.
- This decision aims to avoid breaking Labour's manifesto pledge and prevent angering voters and backbench MPs.
- Economists predict substantial tax rises are still needed to address a £22bn government finance shortfall due to rising borrowing costs and weak growth forecasts.
- Other potential tax measures under consideration include changes to VAT, new land taxes to replace stamp duty and council tax, and adjustments to Capital Gains Tax for high-value properties.
- Reeves may also consider reforms to pension policy, such as cutting higher rates of pension tax relief, which could generate significant revenue.